You have $480,000 to invest, and you are considering several options. Rank the following non-
mutually exclusive investment opportunities using present value ratio and growth rate of return
analyses. Confirm that your selection of project(s) yields the highest cumulative NPV. The
minimum rate of return is 20%.
0
Food Truck
Cost
$160,000
Income
Salvage
1
2
3
4
5
$150,000
$150,000
$150,000
$150,000
$150,000
$50,000
0
1
2
3
4
5
Rental House
Cost
$320.000
Income
$275,000
$275,000
$275,000
$275,000
Salvage
$70,000
0
1
2
3
4
5
Coffee Shop
Cost
$480,000
Income
$500,000
$500,000
$500,000
Salvage
$100,000